Colgate-Palmolive (CL)
NYSE:CL
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Colgate-Palmolive
(NYSE:CL)
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Rating:60Neutral
Price Target:
$92.00
â–²(7.21% Upside)
Action:Reiterated
Date:05/03/26
The score is driven primarily by strong profitability and cash flow resilience, but materially constrained by elevated balance-sheet risk (thin equity and very high reported leverage). The earnings call was mixed—guidance held, but margin pressure is rising—while technical signals are only modestly supportive. Valuation is held back by the negative P/E despite a reasonable dividend yield.
Positive Factors
Strong cash generation
Consistent high operating and free cash flow provides durable funding for capex, dividends, buybacks and restructuring outlays without relying on external financing. This cash profile supports long-term investment in brands and SG&A while cushioning cyclical pressure.
Negative Factors
Extremely thin equity / high leverage
An unusually thin equity base and very high reported leverage materially reduce financial flexibility, increase refinancing and covenant risk, and amplify downside from shocks, constraining capital allocation choices during multi-year strategic programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent high operating and free cash flow provides durable funding for capex, dividends, buybacks and restructuring outlays without relying on external financing. This cash profile supports long-term investment in brands and SG&A while cushioning cyclical pressure.
Read all positive factors
Colgate-Palmolive Key Performance Indicators (KPIs)
Any
Oral, Personal, and Home Care Revenue Breakdown
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Data provided by:
The Fly
The FlyColgate-Palmolive (CL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.06B
Dividend Yield2.67%
Average Volume (3M)6.07M
Price to Earnings (P/E)26.5
Beta (1Y)0.11
Revenue Growth4.26%
EPS Growth-27.12%
CountryUS
Employees34,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.59
Shares Outstanding800,189,330
10 Day Avg. Volume5,218,023
30 Day Avg. Volume6,067,427
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)1.18K
Price to Sales (P/S)3.14
P/FCF Ratio17.58
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.69
Enterprise Value/Gross Profit6.14
Enterprise Value/Ebitda19.58
Forecast
1Y Price Target
$96.00Price Target Upside11.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.81
Revenue Forecast (FY)$21.46B
Colgate-Palmolive Business Overview & Revenue Model
Company Description
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment off...
How the Company Makes Money
Colgate-Palmolive primarily makes money by selling consumer packaged goods (CPG) and pet nutrition products to trade customers around the world. Its revenue model is largely volume- and price-driven: it manufactures or sources finished goods, sell...
Colgate-Palmolive Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call balanced encouraging operational and strategic progress — accelerated organic sales, volume + pricing gains excluding private-label pet impact, strong Hill's performance, emerging-market momentum, and an expanded productivity program — against meaningful near-term margin headwinds: roughly $300 million of incremental cost pressure, elevated commodity and logistics inflation (>20% and ~10% respectively), gross margin degradation, North America underperformance, and temporary private-label pet disruption. Management maintained overall sales and EPS guidance and emphasized offset plans (RGM, pricing via innovation, productivity/SGPP, disciplined advertising), but acknowledged persistent macro uncertainty.Positive Updates
Top- and Bottom-Line Growth
Company reported strong top- and bottom-line growth in Q1 2026 and delivered growth in gross profit, operating profit, EPS and free cash flow while increasing brand and capability investments.
Negative Updates
Incremental Cost Inflation Headwind
Since the Q4 call, management identified approximately $300 million of additional raw materials and logistics cost pressure for the year (estimated ~2/3 raw materials, 1/3 logistics), prompting downward gross margin guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Top- and Bottom-Line Growth
Company reported strong top- and bottom-line growth in Q1 2026 and delivered growth in gross profit, operating profit, EPS and free cash flow while increasing brand and capability investments.
Read all positive updates
Company Guidance
Colgate maintained its 2026 top‑ and bottom‑line guidance with organic sales growth still targeted at 1%–4% and EPS growth guided to low‑ to mid‑single digits, but warned gross margin will be down year‑over‑year after building in roughly $300 million of incremental raw‑materials and logistics pressure (about two‑thirds raw materials, one‑third logistics). Management is modeling oil at about $110 on average for the remainder of the year, expects oil‑byproduct spending (resins, petrochemicals, fats & oils) to be up >20% year‑over‑year and logistics costs nearly +10%, and noted North America gross margins are being pressured by tariffs. The company reiterated its strategic growth & productivity program (SGPP) savings of $200–$300 million (majority of savings flowing in 2027–28) with the program still expected to complete by December 31, 2028, and said the private‑label pet exit is a ~260‑basis‑point headwind (about a 20–30 bp company impact in Q2) that should abate by the back half of the year.Colgate-Palmolive Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
32
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.80B | 20.38B | 20.10B | 19.46B | 17.97B | 17.42B |
| Gross Profit | 12.49B | 12.25B | 12.11B | 11.25B | 10.15B | 10.29B |
| EBITDA | 3.92B | 3.96B | 4.85B | 4.25B | 3.37B | 3.76B |
| Net Income | 2.09B | 2.13B | 2.89B | 2.30B | 1.78B | 2.17B |
Balance Sheet | ||||||
| Total Assets | 16.61B | 16.33B | 16.05B | 16.39B | 15.73B | 15.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.42B | 1.29B | 1.10B | 966.00M | 775.00M | 832.00M |
| Total Debt | 7.97B | 7.99B | 8.51B | 9.06B | 9.27B | 7.83B |
| Total Liabilities | 16.12B | 15.96B | 15.50B | 15.44B | 14.93B | 14.07B |
| Stockholders Equity | 145.00M | 54.00M | 212.00M | 609.00M | 401.00M | 609.00M |
Cash Flow | ||||||
| Free Cash Flow | 3.77B | 3.63B | 3.55B | 3.04B | 1.86B | 2.76B |
| Operating Cash Flow | 4.34B | 4.20B | 4.11B | 3.75B | 2.56B | 3.33B |
| Investing Cash Flow | -780.00M | -817.00M | -534.00M | -742.00M | -1.60B | -592.00M |
| Financing Cash Flow | -3.36B | -3.26B | -3.39B | -2.79B | -952.00M | -2.77B |
Colgate-Palmolive Technical Analysis
Positive
85.81
Price Trends
90.18
Negative
85.64
Positive
83.60
Positive
Market Momentum
-1.32
Negative
48.58
Neutral
44.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Positive. The current price of 85.81 is above the 20-day moving average (MA) of 84.74, below the 50-day MA of 90.18, and above the 200-day MA of 83.60, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.
Colgate-Palmolive Risk Analysis
Colgate-Palmolive disclosed 19 risk factors in its most recent earnings report. Colgate-Palmolive reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Colgate-Palmolive Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $340.95B | 21.99 | 31.28% | 2.92% | 3.33% | 8.06% | |
69 Neutral | $126.72B | 12.84 | 26.01% | 3.74% | -13.78% | 11.80% | |
65 Neutral | $22.14B | 25.51 | 17.45% | 1.38% | 2.22% | 29.40% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $70.06B | 26.46 | 475.13% | 2.67% | 4.26% | -27.12% | |
60 Neutral | $32.63B | 12.04 | 143.64% | 5.03% | -16.17% | -13.40% | |
54 Neutral | $11.14B | 16.81 | 2826.17% | 5.05% | -3.69% | 10.26% |
* Consumer Defensive Sector Average
CL
Colgate-Palmolive
86.74
1.03
1.20%
CHD
Church & Dwight
90.72
-2.17
-2.34%
CLX
Clorox
88.90
-41.55
-31.85%
KMB
Kimberly Clark
95.75
-32.57
-25.38%
PG
Procter & Gamble
143.36
-10.93
-7.09%
UL
Unilever
57.24
-5.75
-9.13%
Colgate-Palmolive Corporate Events
Business Operations and Strategy
Colgate-Palmolive Expands Strategic Growth and Restructuring Program
Negative
May 1, 2026
On July 31, 2025, Colgate-Palmolive’s board approved a three-year Strategic Growth and Productivity Program aimed at aligning its organizational structure with its 2030 strategy, optimizing its global supply chain and reducing overhead costs...
Executive/Board Changes
Colgate-Palmolive Announces Planned Chief Legal Officer Succession
Neutral
Apr 9, 2026
Colgate-Palmolive announced that longtime Chief Legal Officer and Secretary Jennifer M. Daniels, who has held the role since 2014, plans to retire from the company in 2026. In connection with her planned retirement, the Board elected Executive Vic...
Business Operations and StrategyFinancial Disclosures
Colgate-Palmolive Announces Global Segment Realignment for 2026
Neutral
Mar 17, 2026
Colgate-Palmolive will realign its reportable operating segments effective for the quarter ending March 31, 2026, combining its Europe and Africa/Eurasia (excluding Russia and Belarus) segments with its Skin Health business, previously in North Am...
Executive/Board Changes
Colgate-Palmolive Refreshes Board With New Bristol Myers Leader
Positive
Mar 12, 2026
On March 12, 2026, Colgate-Palmolive’s board elected Christopher S. Boerner, Board Chair and Chief Executive Officer of Bristol Myers Squibb, to join its board effective March 15, 2026, adding deep global pharmaceutical and healthcare experi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.